CEOs know how to tackle uncertainty
In this interview, Dumitru Ion, CEO of Doingbusiness.ro and Kompass Romania has talked to us about the important roles a CEO has to play in order to address uncertainty and secure the sustainable growth of the company in 2023.
1. How are CEOs navigating uncertainty in today’s business environment?
Dumitru ION: Navigating uncertainty in today’s business environment requires a multifaceted approach. In Romania, according to a study by Deloitte, 92% of CEOs are concerned about uncertainty in the global economy.
Some key factors that can help a company navigate uncertainty include:
- Leveraging data to make informed decisions and identify potential risks and opportunities.
- Developing plans to mitigate potential risks and prepare for unexpected events.
- Being able to pivot quickly in response to changing circumstances and adjusting strategies as needed.
- Expanding revenue streams and diversifying the customer base to reduce dependence on any one market or product.
- Staying ahead of the competition and adapting to changing market conditions through the development of new products and services and the use of emerging technologies.
- Maintaining open communication with stakeholders, including employees, customers, and investors, to ensure transparency and build trust.
Aditionally, staying agile in decision-making and maintaining open communication with stakeholders is critical, as 87% of CEOs in Romania see communication as a key driver of success in navigating uncertainty.
2. What role does data analytics play in navigating uncertainty?
Dumitru ION: In Romania, 91% of CEOs surveyed by PwC see data analytics as key to making informed decisions and managing uncertainty. By leveraging data, we can better understand trends and identify potential risks and opportunities.
CEOs play a critical role in making data analytics essential for navigating uncertainty. Here are some ways CEOs can help make data analytics a core part of their organization’s approach to navigating uncertainty:
- Emphasize the value of data: CEOs can communicate the importance of data analytics to the entire organization, explaining how it can help identify potential risks and opportunities and improve decision-making.
- Invest in data infrastructure: To make data analytics effective, CEOs must invest in the necessary tools and infrastructure to collect and analyze data.
- Hire data experts: CEOs can recruit and hire data experts to help analyze the data and turn it into actionable insights.
- Prioritize data-driven decision-making: CEOs can encourage a culture of data-driven decision-making, emphasizing the importance of using data to make informed choices.
- Leverage data to measure performance: CEOs can use data to measure and monitor the performance of the organization, identifying areas for improvement and adjusting strategies as needed.
Overall, CEOs play a critical role in making data analytics essential for navigating uncertainty. By prioritizing data and investing in the necessary infrastructure and expertise, CEOs can position their organizations to make informed decisions and navigate uncertainty successfully.
3. How important is innovation in navigating uncertainty?
Dumitru ION: In Romania, 87% of CEOs surveyed by PwC believe that innovation is critical to navigating uncertainty. Business leaders are focused on developing new products and services, and investing in emerging technologies to stay ahead of the curve.
Obviously, CEOs can make a variety of decisions to demonstrate that innovation is important for navigating uncertainty. Here are some examples:
- Allocate resources: CEOs can allocate resources, such as funding and personnel, to support innovation initiatives. This might involve creating a dedicated innovation team or investing in new technologies and R&D.
- Emphasize experimentation: To foster a culture of innovation, CEOs can encourage experimentation and risk-taking. This might involve implementing processes for testing new ideas or creating a safe space for employees to share and explore new concepts.
- Foster collaboration: Innovation often requires collaboration across different teams and departments. CEOs can encourage cross-functional collaboration and create opportunities for employees to share ideas and work together.
- Embrace emerging technologies: CEOs can prioritize the use of emerging technologies, such as artificial intelligence, machine learning, and blockchain, to improve processes, increase efficiency, and create new products and services.
- Stay ahead of industry trends: To remain competitive, CEOs can stay ahead of industry trends and developments, positioning their organizations as thought leaders and innovators in their respective fields.
CEOs can make a variety of decisions to demonstrate that innovation is important for navigating uncertainty. By prioritizing innovation, organizations can stay ahead of the curve and adapt to changing market conditions, ultimately improving their chances of success in uncertain times.
4. What strategies have been effective for CEOs in navigating uncertainty?
Dumitru ION: In the past three years, CEOs have used a variety of strategies to navigate uncertainty successfully. Here are some examples of effective strategies:
- Scenario planning: By creating scenarios for different possible outcomes, CEOs can prepare their organizations to respond effectively to a range of potential future events.
- Lean operations: By streamlining operations and cutting costs, CEOs can position their organizations to weather uncertain times and emerge stronger on the other side.
- Strategic partnerships: By partnering with other organizations or suppliers, CEOs can reduce risk and increase resilience.
- Customer-focused approach: By staying focused on the needs and preferences of customers, CEOs can identify opportunities and respond quickly to changing market conditions.
- Employee engagement: By fostering a culture of engagement and providing support to employees, CEOs can improve morale and reduce turnover, creating a stable workforce that can weather uncertain times.
- Digital transformation: By investing in digital technologies and processes, CEOs can improve efficiency, increase agility, and open up new revenue streams.
In Romania, effective strategies for navigating uncertainty include diversifying revenue streams, investing in technology, focusing on innovation, and developing contingency plans for potential risks.
